Question

you throw 2 dice. the sum is 6 or more, you win $41. If not, you pay me $114. Fine the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

Answer 1

There are ...
1 way to roll 2
2 ways to roll 3
3 ways to roll 4
4 ways to roll 5
hence 10 ways to lose $114 out of the 36 ways the dice can land. For each of the remaining 26 ways the dice can land, you win $41. The expected value of your winnings is
(10/36)*(-114) + (26/36)*(41) = -31.67 + 29.61 = -2.06